Issuance of electronic securities via D7 Platform
Electronic securities and the digitisation of issuance processes are at the forefront of the financial industries' digital transformation initiatives and require a new digital generation of financial infrastructure.
Deutsche Börse’s next-generation new digital issuance platform, D7, will allow market participants to issue electronic securities by leveraging digital instruments (DI), a digital description of the securities.
Market leader in the digital issuance and post-trade world
D7 provides a fully digital alternative to conventional physical issuance and processing of securities. Customers will be able to digitise their financial products with continuing access to both existing central and distributed infrastructures and markets.
In the future, market participants benefit from same-day-issuance and automated straight-through processing for the entire value chain of issuance, custody, settlement and asset servicing for electronic securities.
The D7 platform enables end-to-end digital securities processing
Launch partners include leading financial institutions and global technology partners
Same-day-issuance and paperless, automated straight-through processing
Paving the way for establishing electronic securities in Germany (eWpG)
Leverage digital instruments
The German electronic securities act (eWpG) opens the door for establishing electronic securities as an alternative to securities issued via a physical certificate. The law targets bearer bonds (i.e. bonds, warrants and certificates) as well as investment funds. Depending on the type of register where the electronic security is issued, it qualifies either as a central register security or as a crypto security.
A digital instrument (DI) is the digital description of an electronic security containing the business logic and acting as a data container. It provides information about all events, actions, rules, legal documents and parties for the entire lifecycle of the electronic securities. The DI and automated processing thereby reduces costs, friction and reconciliation time as well as operational risks.
Clearstream developed the D7 Digitiser for institutions to issue electronic securities - available for fixed income and structured products - in a fully digital process and to cater for the automated lifecycle management. It leverages the DI as a digital representation of electronic securities inherently containing the static data of such securities in the central register.
D7 CeFi - the central register
To enable the issuance and trading of electronic securities, the central register forms a crucial part of the D7 infrastructure. It contains the static data of the issuance, likewise a view of the Terms and Conditions document, additionally it reflects the entire lifecycle of the electronic securities, including mark-up / mark-down and maturities as well as further corporate actions.
A precondition to the final entry into the central register is the publication of the filed terms and conditions of the electronic security according to Sec. 5 eWpG. These terms and conditions are published by Clearstream via the public node which is available to the public.
For additional information, please contact your Relationship Manager: you can also find additional information on the developments of the D7 platform on the Deutsche Börse’s dedicated D7 page.
If you would like to participate as an issuer through the D7 platform, please complete the attached subscription form.